HSBC April PMI Rises to 49.3; Recovery Under Way

The report said the rise was led mainly by improving new orders flows which hit a six month high of 49.7 and a slower rate of production contraction at 49.3 from March's 47.4.

Final reading of the HSBC China Manufacturing PMI, a major indicator for the country's manufacturing activities, rose for the fifth consecutive month to 49.3 in April, a sign that China's slowdown is stablizing , according to a HSBC report released Tuesday.

The report said the rise was led mainly by improving new orders flows which hit a six month high of 49.7 and a slower rate of production contraction at 49.3 from March's 47.4.

Meanwhile, new exports orders rose back above 50 for the first time in three months to 50.2 in April, after posting below 48 the two months prior.

The gradual improvement in April’s final HSBC manufacturing PMI confirmed that the pace of China's slowdown is stabilizing, and that Beijing’s earlier easing measures are starting to work, said HSBC in the report.

However, the report said the current pace of growth remains insufficient to assume a solid recovery, adding China's exports outlook still uncertain on the lower-than-expected US Q1 GDP result and ongoing European problems.

Meanwhile, "China’s property-led investment slowdown will likely continue for a few more months" and "small and medium-sized companies, which account for 80% of employment, still face difficult business conditions", said HSBC.

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